Cash-strapped Saab Requests Altering Financing

Staff is staying home at least until the end of this week.

Sweden's National Debt Office (NDO) on April 14 received an application from Saab on changes to its financing aimed to save the carmaker. The office has a say in Saab's financing because it guaranteed a European Investment Bank loan to Saab but a final decision must be made by the Swedish government itself.

"This morning we received a final proposal from Saab dealing with solutions for their financial problems. We have expedited it (to the government) ... and by close of business today we will send a letter to the government with a recommendation," said NDO official Daniel Barr.

The application to the NDO was "about the release of its security with respect to Saab property," Saab spokesman Eric Geers said.

The office "is not against the principle of releasing this security," Spyker said.

Spyker said earlier this week it was "in discussion with a financial institution on the sale and lease back of Saab Automobile's real estate property," adding a decision was subject to the approval of the NDO.

The Dutch company rescued iconic Swedish brand Saab at the last minute in January 2010 by buying it from General Motors. But it did not meet its sale objectives for the year and last month Saab started halting production amid conflicts with suppliers over unpaid bills.

Saab said last week production was stopped "until further notice."

Geers said that Saab staff would stay home at least until the end of this week.

Copyright Agence France-Presse, 2011

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish